Civil Services Prep

Prelims 2019 · Economy · Question 20

With reference to India's Five-Year Plans, which of the following statements is/are correct?<br/>1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.<br/>2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.<br/>3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.<br/><br/>Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 2 only
  3. 3 only
  4. 1, 2 and 3

Answer

1 and 2 only

1. Correct. The Second Five-Year Plan (1956–61) followed the Mahalanobis strategy and gave a strong push to basic and capital goods industries with an import-substitution orientation.

2. Correct. The Fourth Five-Year Plan (1969–74) explicitly emphasized growth with stability and progressive achievement of self-reliance, and policy thinking in this period also aimed at reducing concentration of wealth and economic power.

3. Incorrect. The financial sector was not included for the first time in the Fifth Plan as an integral part in the manner stated; this claim is not factually correct.

Hence, statements 1 and 2 only are correct.

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